Summary Financial Planning › Set Financial Metrics Options at the Investment Level

Set Financial Metrics Options at the Investment Level

You can set the total cost of capital and the reinvestment rate for an investment on the budget properties page. These investment-level settings override any system-level settings.

The investment-level rates are used for calculating financial metrics for the individual investment.

Follow these steps:

1. Open the investment.
2. Open the Properties menu, and click Budget.

   The budget properties appear.

3. Complete the following fields in the Financial Metrics Options section:

   Use System Rate for Total Cost of Capital

   Specifies if you want to use the system-level total cost of capital for this investment. Clear this check box and enter a value in the corresponding Investment Rate field located below the System Rate field. The investment rate defines the annual finance rate on the capital borrowed to fund this investment.

   Default: Selected

   Use System Reinvestment Rate

   Specifies if you want to use the system-level reinvestment rate for this investment. Clear this check box and enter a value in the corresponding Investment Rate field located below the System Rate field. The investment rate defines the annual interest rate used to reinvest positive cash flow for this investment.

   Default: Selected

   Initial Investment

   Defines the initial cost of the investment used in all financial metric calculations. You can configure this field to appear on the portfolio scorecard and display aggregated values for investments and child investments.

   If you do not specify a value, initial investment is treated as zero. A negative initial investment value is allowed.

4. Save the changes.

More information:

Financial Metrics for Planning

How Financial Metrics for Projects and Subprojects are Calculated

How Financial Metrics for Portfolios are Calculated

Set Financial Planning Options

Set Financial Metrics Options at the System Level